So...if you look at row #7, there are 4 yarn overs and 2 k2togs. Just curious how this works out. When you start the row, you have 12 stitches from prev row. I don't understand how the numbers work out, if you have only 12 stitches to begin with, and you are turning 4 of them into 2 (2 k2togs), it would seem like you would have to begin with 14 stitches (at row 7) to incorporate the whole line's pattern. I know, might be confusing, but any help would be great!

The extra 2 yarn overs are to increase the width. Row 8 you'll
knit all the stitches (including the yarn overs), and as you can see Row 9 has the extra 2 stitches accounted for. Just go
according to the chart and I think you'll see it'll all work out.
There's no error at this point anyway.

From re-reading what you've written in your opening post, I just want to make sure you're doing the yarn overs correctly. That's the only reason I can think of for your coming up without enough sts.

A yarn over is simply wrapping the yarn around the needle - after you knit your 2nd st, bring the yarn to the front between the needles, then to the back over your right needle. Knit your 3rd st, which has now become the 4th st in your count.

I'm sorry if you know that and I'm wrong, it's just the way I could account for it not adding up.

__________________Wenda"Be afraid of bears, of bungee-jumping, of faulty wiring in old houses, but never, ever be afraid of trying something in knitting."Stephanie Pearl-McPhee, Knitting Rules